UAE and Jordan Sign Investment Memorandum to Boost Cooperation in Railway Sector

The Ministry of Investment of the UAE and the Ministry of Investment of Jordan have signed an Investment Memorandum to establish cooperation in the railway sector.

This partnership aims to enhance the exchange of knowledge, skills, and technical expertise between the two nations. A significant aspect of this collaboration involves Etihad Rail, the UAE National Railway Network developer, and the Jordanian Ministry of Transport. Together, they will work on implementing a 360-kilometre railway network in Jordan, connecting phosphate and potash mines to the Port of Aqaba. This development is poised to improve logistical efficiency, create new job opportunities, and contribute to Jordan's economic growth.

Read More: Kuwait-Saudi Railway's Role in Modernising the GCC Supply Chain

The railway project will also include terminals in Aqaba, Ghor Al Safi, and Shidiya to efficiently handle and transport minerals. This collaboration is set to transform Jordan's logistics operations, bolstering its export capabilities while aligning with international standards.

Mohamed Hassan Alsuwaidi, the UAE’s Minister of Investment, stated: “The Investment Memorandum with the Hashemite Kingdom of Jordan showcases our commitment to leveraging collective and bilateral efforts to drive economic growth, while enhancing resilience and promoting economic diversification. Through sharing technical expertise, we aim to establish new investment connections that support infrastructure development and foster promising opportunities.”

Alsuwaidi highlighted that this initiative is part of a larger vision to build an innovative railway network that exceeds global standards. His comments were echoed by the Prime Minister of Jordan, Dr. Bisher Al-Khasawneh, during the signing ceremony.

Dr. Al-Khasawneh added: "Today, we signed Emirati investment agreements valued at US$2.3 billion to connect the Port of Aqaba with mining areas in Al-Shidiya and Ghor Al-Safi. These agreements form part of broader efforts that Jordan and the UAE have undertaken, with the overall investment framework totalling US$5.5 billion."

He further noted that the establishment of this railway will enhance Jordan's logistical and export capabilities, starting with the capacity to transport 16 million tonnes of phosphate and potash annually. The project will connect major mining sites to Aqaba, enhancing efficiency and creating new job opportunities across various sectors.

The Jordanian railway project is expected to be fully operational by 2030, with initial studies to be completed by 2025. This development follows the Jordanian Investment Fund Law and is set to revolutionise transport infrastructure within the Kingdom.

Shadi Malak, CEO of Etihad Rail, said: "The agreements signed by Etihad Rail reinforce our ongoing commitment to strengthening our presence in the region. With the unwavering support of our leadership, we are keen to leverage our expertise in developing and operating the UAE National Railway Network to support Jordan’s ambitious rail infrastructure plans."

The Jordanian railway project underscores the critical relationship between the two nations, enhancing export operations and creating strategic logistical connections within the region. The collaboration reflects the longstanding ties between Jordan and the UAE, which have paved the way for mutual economic growth.

Read More: Bahri Logistics to Provide Global Freight Forwarding Services for Saudi Railways